Forbes/26 September 2017
Sanctions have not had any real impact on Russian oil and gas giant Gazprom. It toppled Exxon’s 12-year reign as the world’s leading energy company, according to S&P Global Platts rankings released on Sunday.
Platts’ annual Top 250 energy companies ranks companies based on asset worth, revenues, profits, and return on invested capital. All companies on the list have assets greater than $5.5 billion. That Gazprom is No. 1 is a testament to its management’s ability to weather low oil and gas prices, bans from low interest rate credit in Europe, and its secured position as the EUs leading foreign supplier of natural gas, a market the United States is desperate to tap.
Gazprom is majority owned by the Russian state, and while it is known as a natural gas company, its subsidiary Gazprom Neft is one of the largest oil firms in the country, too.
Gazprom become has infamous over the years, most notably due to its legal battles with Ukraine. In fact, a Gazprom deal in exchange for a European trade deal ultimately toppled Ukrainian leader Viktor Yanukovych in 2014, pulling Kiev out of its historic orbit with Moscow.
Sanctions followed that summer when Russia annexed Crimea, home to its historic Black Sea fleet, and aided a separatist movement in East Ukraine. Gazprom is one of the companies sanctioned. Congress banned U.S. companies from providing it with oil and gas drilling equipment and technological exchanges that would help Gazprom learn how to drill through shale deposits.
None of this has had any meaningful impact on the company. Instead, it rose from the number three spot to number one, unseating Exxon, a company now banned from its own joint venture with Rosneft, another sanctioned Russian energy firm. Rosneft is ranked No. 22.
Among this year’s biggest movers: Germany’s E.ON rose meteorically to No. 2 from No. 114. British utility company Centrica is now No. 15, up from No. 156th on the Platts list. Brazil’s Eletrobras rose to No. 47 from the bottom of the barrel at 193rd. And Houston-based CenterPoint Energy surged to No. 105 from the prior year’s rank of 220.
The top 10 companies posted combined profits of $63.7 billion last year, 14% lower than the $74.3 billion posted the year before.
The Top Five
|2017 Rank||Company/Country||2016 Rank|
|4||Korea Electric Power/South Korea||2|
|5||China Petroleum & Chemical||13|
For the full list click here.
News Source: Forbes